Engineering and construction company Downer EDI has secured a A$660m ($513.09m) contract for the next phase of OZ Minerals’ Carrapateena underground mine, which is located approximately 160km north of Port Augusta in South Australia.
The contract is slated to run for a period of around six and a half years and will see Downer conduct various underground mining activities, including site setup and development to the top of the ore body, as well as infrastructure excavation works.
The scope of the deal will also cover production setup and ramp up, in addition to bedding in steady-state operations at the site’s nameplate capacity.
Downer CEO Grant Fenn said: “This new contract is an excellent example of the breadth of services we can offer to customers in the mining and resources sector.
“We look forward to working closely with OZ Minerals to ensure this important project is delivered safely and efficiently.”
The company is expected to begin work on all contracted underground mining operations at the site from 1 July.
Downer is also set to complete a 10-week transition period prior to the commencement of mining services, which is now underway.
OZ Minerals received all primary approvals for the underground mine from the state and federal governments at the end of last month, including the mining lease.
The latest mining services deal follows the award of an engineering, procurement and construction contract to Downer and its joint venture partner Ausenco for the A$916m ($712.10m) Carrapateena project, which was previously granted in December last year.